Seanergy Maritime: Νέα συμφωνία παράδοσης πλοίου – Η διάρκεια της χρονοναύλωσης
Η Seanergy Maritime Holdings Corp. ανακοίνωσε τη συμφωνία παράδοσης ενός Capesize πλοίου χωρητικότητας 181.325 dwt, το οποίο κατασκευάστηκε το 2012 στο ναυπηγείο Imabari Shipbuilding Co. στην Ιαπωνία και που μετονομάστηκε σε M/V Hellasship.
Πρόκειται για το πλοίο που απέκτησε η Seanergy Maritime στα τέλη Μαρτίου, με την αξία αγοράς του να ανέρχεται στα 28,6 εκατ. δολάρια.
Η παράδοση του M/V Hellasship είναι η πρώτη από τις συνολικά τέσσερις για Capesize που αφορούν το 2021.
Το πλοίο είναι ήδη έτοιμο για χρονοναύλωση με τη ιαπωνική NYK Line. Η χρονοναύλωση αναμένεται να ξεκινήσει άμεσα, μετά και την ολοκλήρωση της συνηθισμένης διαδικασίας μετάβασης, ενώ θα διαρκέσει minimum 11 μήνες (maximum 15 μήνες) από την ημερομηνία παράδοσης.
Όπως επισημαίνει η εταιρεία, το ακαθάριστο ημερήσιο ναύλο της χρονοναύλωσης βασίζεται σε ασφάλιστρο έναντι του δείκτη Baltic Capesize.
Ο κ. Σταμάτης Τσαντάνης, Πρόεδρος και Διευθύνων Σύμβουλος της εταιρείας, δήλωσε:
«Είμαστε στην ευχάριστη θέση να ανακοινώσουμε την έγκαιρη παράδοση του 12ου cape vessel μας, στο πλαίσιο της ισχυρότερης αγοράς Capesize της τελευταίας δεκαετίας, με τα ναύλα να ξεπερνούν τα 42.000 $ την ημέρα.
Αυτή η παράδοση είναι η πρώτη από τις τέσσερις που συμφωνήσαμε μέχρι το 2021, πριν από την εντυπωσιακή αύξηση των τιμών ημερών ημερησίων ναύλων και των αξιών των περιουσιακών στοιχείων (asset values).
Περιττό να αναφέρουμε ότι η χρονική συγκυρία ήταν για άλλη μία φορά ιδανική.
Ταυτόχρονα, είμαστε στην ευχάριστη θέση να ξεκινήσουμε μια μακροχρόνια εμπορική συνεργασία με έναν άλλο κορυφαίο ναυλωτή μέσω του M/V Hellasship.
Οι σχέσεις που έχουμε δημιουργήσει με πρώτης τάξεως ναυλωτές στον χώρο των Capesize μαρτυρούν και την ποιότητα λειτουργίας των πλατφορμών διαχείρισης του στόλου μας.
Προς το παρόν, το 92% του στόλου μας απασχολείται με χρονοδναυλώσεις που σχετίζονται με δείκτες, οι οποίοι με τη σειρά τους επιτρέπουν στα κέρδη της Seanergy να σχετίζονται σε μεγάλο βαθμό με την απόδοση του δείκτη Capesize.
Πιστεύουμε ότι η Seanergy, ως ιδιοκτήτρια Capesize, μπορεί να επωφεληθεί πλήρως από το ευνοϊκό περιβάλλον κερδών και από την αύξηση των αξιών των asset values».
Seanergy Maritime Holdings Corp. Announces Delivery of Capesize M/V Hellasship and Time Charter Agreement with NYK Line
Seanergy Maritime Holdings Corp. announced today that it has taken delivery of the 181,325 dwt Capesize bulk carrier, built in 2012 by Imabari Shipbuilding Co. in Japan, which was renamed M/V Hellasship (the “Vessel”). The delivery of the M/V Hellasship is the first of the four Capesize acquisitions performed already in 2021.
The Vessel has been fixed on a time charter (“T/C”) with NYK Line, a leading Japanese shipping company and operator. The T/C is expected to commence immediately, upon finalization of the customary transition process and will have a term of minimum 11 to maximum 15 months from the delivery. The gross daily rate of the T/C is based at a premium over the Baltic Capesize Index (“BCI”).
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:
“We are pleased to announce the well-timed delivery of our twelfth cape vessel, during the strongest Capesize market of the last decade with spot rates standing currently above $42,000 per day. This delivery is the first of the four acquisitions we agreed so far in 2021, before the impressive surge in freight day rates and asset values. Needless to say, that our timing has been once again optimal.
“At the same time, we are glad to initiate a long-term commercial partnership with another leading charterer through M/V Hellasship’ s period employment. The relationships we have established with first class charterers in the Capesize space attest to the operational quality of our fleet and management platforms.
“Currently, 92% percent of our fleet is employed under index-linked time charters allowing Seanergy’ s earnings to be highly correlated with the performance of the Capesize index. We believe that Seanergy, as a pure-play Capesize owner, is best positioned to fully benefit from the strong earnings environment and increasing asset values.”
Seanergy Maritime Holdings Corp. to Acquire Two Additional Capesize Vessels
Seanergy Maritime Holdings Corp. announced that it has entered into agreements with unaffiliated third parties to purchase two Capesize vessels. Following their delivery, the size of the Company’s fleet will increase to 14 Capesize vessels with an aggregate cargo capacity of approximately 2.5 million dwt.
The first vessel was built in 2013 at a reputable shipyard in Japan, has a cargo-carrying capacity of approximately 176,000 deadweight tons (“dwt”) and shall be renamed M/V Flagship. The vessel is expected to be delivered to the Company by the end of April 2021, subject to the satisfaction of certain customary closing conditions.
The second vessel was built in 2010 at a reputable shipyard in Japan, has a cargo-carrying capacity of approximately 182,000 dwt and shall be renamed M/V Patriotship. The vessel is expected to be delivered to the Company by the end of May 2021, subject to the satisfaction of certain customary closing conditions.
The special survey and ballast water treatment system installation for both vessels were completed recently by the current owners and therefore the Company does not anticipate incurring significant capital expenditure for these vessels at least for the next two years. Moreover, M/V Patriotship is fitted with an exhaust gas cleaning system (scrubber).
The aggregate purchase price for the two vessels is approximately $55 million and is expected to be funded with cash on hand. The Company is also in discussions with leading financial institutions to finance part of the acquisition cost at competitive financing terms.
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:
“We are very pleased to announce the acquisition of two high-quality Capesize vessels built at reputable shipyards in Japan. The M/Vs Flagship and Patriotship, both delivering promptly and in a rapidly increasing market environment, represent great added value for Seanergy, the only U.S. listed pure-play Capesize company. Following the delivery of these two vessels and a third acquisition announced last month, our fleet’s cargo carrying capacity will increase by 28% as compared to the beginning of the year.
The average of the Baltic Capesize Index for the current quarter stands at substantially higher levels than for the same period in recent years, while the Capesize forward freight contracts (“FFA”) for the second half of 2021 are trading at $23,000 per day. Based on current FFA rates, the incremental net revenue from all three acquisitions announced so far this year may exceed $15 million for the remainder of the year, assuming the expected deliveries for the vessels. Seanergy is ideally positioned to capture the substantial improvement of the market as all the vessels of our fleet will be deployed in the spot market or on index-linked time charters.
Since the beginning of 2021 we have concluded or have agreed to significant accretive transactions and we will continue to actively pursue similar deals, aiming to create substantial shareholder value in the coming years.”
Company Fleet upon Vessels’ delivery:
Seanergy Maritime Holdings Corp. Announces Full Prepayment of a Senior Credit Facility and Reduction of Junior Facilities Resulting in Significant Cashflow Benefit
Seanergy Maritime Holdings Corp. announced that it has come to an agreement with one of its lenders, Entrust Global, for the early prepayment of a credit facility secured by a first priority mortgage on one of its Capesize vessels, the M/V Lordship (the “Facility”).
The outstanding balance of the Facility is $21.6 million and is scheduled to be repaid with immediate effect. The initial earliest maturity date is in June 2023. The average applicable coupon through the remaining term of the Facility is approximately 10%.
Following the prepayment and assuming no refinancing of the M/V Lordship, the interest savings for the Company would be expected to be $1.3 million for the remaining of 2021 and $1.8 million on average per year for 2022-23. Additionally, annual repayments would be reduced by approximately $2.5 million on average, which would positively impact the average break-even rate of the Company’s fleet.
In addition, a significant portion of the Company’s junior / unsecured facilities has also been prepaid since the beginning of 2021 pursuant to the mandatory prepayment terms of those facilities, resulting in further reduction in the interest expense. Specifically, a $12.0 million prepayment has been applied against the junior / unsecured loans with an applicable interest rate of 5.5%, resulting in expected annual interest savings of approximately $660,000.
The prepayment amounts were funded with cash on hand.
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:
“We are pleased to announce these transactions for the Company, where the immediate reduction of our financial expenditure will have a direct positive reflection on the Company’s profitability. At the same time, the average break-even of the fleet will be significantly reduced, enhancing our cash-flow generating capacity. Assuming no immediate refinancing, the expected cash-flow benefit for Seanergy will be approximately $4.9 million per year.
During the first quarter of 2021, the Capesize daily spot rates have increased to approximately double their historical 5-year averages. Based on the prevailing Capesize market fundamentals, we strongly believe that the next years will be one of the most favorable periods for Capesize vessels. Seanergy will continue to pursue strategic opportunities that will improve our shareholders’ returns in the years to come.”
Seanergy Maritime: Προχώρησε σε ΑΜΚ ύψους 75 εκατ. δολαρίων
Η Seanergy Maritime Holdings ανακοίνωσε αύξηση μετοχικού κεφαλαίου, ύψους 75 εκατομμυρίων δολαρίων. Η έκδοση των 44,2 εκατ. νέων μετοχών πραγματοποιήθηκε κατόπιν ισχυρής ζήτησης από θεσμικούς επενδυτές, στην τιμή των 1.70 δολαρίων ανά μετοχή.
Ο Σταμάτης Τσαντάνης, Πρόεδρος και Διευθύνων Σύμβουλος της ναυτιλιακής, δήλωσε σχετικά: «Μετά την πρόσφατη ανακοίνωση για την αγορά του δωδέκατου capesize πλοίου μας, πετυχαίνουμε μία σημαντική αύξηση μετοχικού κεφαλαίου ύψους 75 εκατ. δολαρίων με διεθνείς θεσμικούς επενδυτές. Η έκδοση αυτή υπερκαλύφθηκε από τους επενδυτές και αποτελεί ισχυρή ψήφο εμπιστοσύνης για την εταιρεία μας. Τα νέα κεφάλαια σε συνδυασμό με την ήδη ισχυρή ρευστότητα της Seanergy αναμένεται να χρησιμοποιηθούν για νέες επενδύσεις πλοίων, καθώς και περαιτέρω μείωση δανεισμού».
«Όπως αναφέραμε, οι προοπτικές της αγοράς των capesizes για το 2021 είναι εμφανώς βελτιωμένες με τα επίπεδα των ναύλων για το πρώτο τρίμηνο του 2021 να είναι αυξημένα κατά 60% σε σχέση με τον μέσο όρο των τελευταίων 5 ετών. Η Seanergy βρίσκεται σε πλεονεκτική θέση να αποκομίσει σημαντικά κέρδη από την ανοδική πορεία της αγοράς», συμπλήρωσε.
Η Seanergy Maritime Holdings είναι εισηγμένη στο αμερικανικό Χρηματιστήριο και διαχειρίζεται αποκλειστικά στόλο πλοίων τύπου Capesize. Με την παράδοση του νέου πλοίου, ο στόλος της θα αποτελείται από 12 bulkers, συνολικής μεταφορικής ικανότητας 2.103.042 τόνων και μέσης ηλικίας 12,2 περίπου ετών.
Seanergy Maritime Holdings Corp. Successfully Completes Fleet Compliance Evaluation for the Upcoming Greenhouse Gas Regulation
Seanergy Maritime Holdings Corp. announced today that it has successfully completed the evaluation of the Energy Efficiency Existing Ship Index (“EEXI”) of its Capesize vessels.
IMO is targeting a 50% reduction in Greenhouse Gas (“GHG”) emissions from international shipping by 2050, compared to the 2008 levels. This will be achieved by implementing short-term, mid-term and long-term measures. As part of the short-term measures, IMO’s Marine Environment Protection Committee (“MEPC”) 75 approved in November 2020 amendments to MARPOL Annex VI, introducing an Energy Efficiency Design Index for existing vessels.
In cooperation with prominent classification society DNV, Seanergy has completed the evaluation of the EEXI in accordance with IMO’s MEPC 75. Pursuant to the results of the evaluation, the Company expects that its existing fleet will remain compliant with applicable GHG regulatory requirements until 2030 with no material cost for the Company.
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:
“We are very pleased with the outcome of the evaluation of our high-quality fleet, which was done in cooperation with a leading classification society. Seanergy has always been at the forefront of all environmental and regulatory developments in our sector. We maintain our position that the shipping community in cooperation with our charterers should be focusing on improving the energy efficiency and carbon footprint of the existing fleet. This can lead to meaningful GHG emissions reduction.
We hereby reiterate our strong commitment to our ESG agenda and a greener shipping industry.”
Seanergy Maritime Holdings Corp. Announces Successful Completion of $179 million Financial Restructuring
Seanergy Maritime Holdings Corp. announced today that it has reached final agreements with certain of its senior lenders and junior lender, for the financial restructuring of a total of $179 million, consisting of four senior credit facilities (the “Senior Facilities”), three junior credit facilities (the “Jelco Loans”) and three junior convertible notes (the “Jelco Notes”). Following these agreements, the previously announced defaults and cross-defaults have been fully resolved.
Pursuant to the restructuring terms, approximately $87 million of debt maturities falling due in 2020 have been extended to future periods, between December 2022 and December 2024, providing Seanergy with a clean two-year runway. In addition, the rescheduling of the amortization payments under certain of the Senior Facilities and the reduction of the interest rate across the junior loans and notes are expected to have a positive impact on the cash break-even of the Company going forward. Moreover, the Company’s lenders have agreed to cancel or amend certain financial covenants and security maintenance provisions under the Senior Facilities allowing for additional financial flexibility, including payment of dividends.
Stamatis Tsantanis, the Company’s Chairman and Chief Executive Officer stated:
“We are very pleased to announce the successful conclusion of the restructuring discussions with certain of our lenders. The discussions extended since the first quarter of 2020 and were finally concluded in an amicable manner. The agreed solutions provide Seanergy with a solid financial standing going forward, allowing us to pursue our strategy to enhance corporate value and pave the way to improved shareholder returns.
Under the agreed restructuring, there are no imminent loan maturities or underlying defaults, our balance sheet has been delevered through the extinguishment of debt and accrued interest and our future cash flow is expected to improve through reduced interest expense and debt amortization payments in the next years. Our overall debt has seen an impressive year-over-year reduction of $36.0 million through the restructuring initiatives and the uninterrupted servicing of the scheduled amortization payments.
Despite the global challenges presented in 2020, we have delivered milestone transactions, including the prominent restructuring of our debt, fleet expansion and beneficial commercial agreements. Seanergy, as the only pure-play Capesize vessel owner listed in the US capital markets, is in a great position to capture what we believe is significant upside potential in a rising market.”
A summary of the various restructuring arrangements is presented below:
Alpha Bank SA (“Alpha Bank”) Extension and Amendments
As previously disclosed, we documented the agreement with Alpha Bank for the extension of two loan facilities secured by two of our Capesize vessels from March 17, 2020 and November 10, 2021, to December 31, 2022. The underlying terms remained substantially the same while in addition, certain corporate covenants and dividend restrictions were cancelled or relaxed. We are currently in compliance with all the terms of these facilities as amended.
Hamburg Commercial Bank AG (“HCOB”) Refinancing and Entrust Global Facility (“Entrust facility”)
As previously disclosed, we entered into a settlement agreement with HCOB for the facility secured by two of our Capesize vessels, under which the $29.1 million outstanding balance was settled for $23.5 million resulting in a $5.6 million debt extinguishment and an equivalent gain for Seanergy. The HCOB facility was refinanced by a new facility provided by certain nominees of Entrust Global and secured by the same vessels. The Entrust facility with an initial balance of $22.5 million, has a five-year term and reduced quarterly repayments that have positively impacted the break-even rates of the underlying vessels, as well as less restrictive financial covenants and value maintenance provisions. These developments resulted in a $6.6 million aggregate reduction in the Company’s debt. We are currently in compliance with all the terms of the Entrust facility.
UniCredit Bank AG (“UCB”) Extension and Amendments
The Company obtained credit committee approval for the extension of the maturity of the UCB facility secured by two of its Capesize vessels, by two years, from December 2020 to December 2022. Moreover, the approval provides for the cancellation of various financial covenants and value maintenance provisions. Most importantly, the lender has agreed to the reduction of the quarterly installments from $1.55 million to $1.2 million, on the basis of which, the all-in cash break-even of the underlying vessels has improved by approximately $1,900 per day. The agreement is subject to completion of definitive documentation.
Amsterdam Trade Bank (“ATB”) Amendments
The Company received credit committee approval from ATB concerning the amendment of the value maintenance provisions and of certain financial covenants under the ATB facility secured by one of our Capesize vessels. Such amendments will address potential non-compliance issues while providing for a uniform approach in the financial covenants across all of the Company’s senior loan facilities. The agreement is subject to completion of definitive documentation.
Jelco Loans and Notes Extensions and Amendments
On December 30, 2020 we entered into definitive documentation with Jelco Delta Holding Corp. (“Jelco”), the Company’s sole junior creditor, concerning $27.2 million of maturities falling due in 2020 and the settlement of accrued and unpaid interest through December 31, 2020. Jelco is a former affiliate of and related party to the Company and pursuant to this agreement, $6.5 million of principal indebtedness under one of the Jelco Loans was repaid, while all other maturities, including those of two Jelco Notes that were maturing in December 2022, were extended to December 2024. In addition, Jelco has agreed to the reduction of the applicable interest rate across all Jelco Loans and Jelco Notes to a fixed rate of 5.5% (previously floating based on LIBOR plus a spread ranging from 5% to 8.5%). Moreover, we have agreed to introduce two interim repayment instalments of $8.0 million each, payable in December 2022 and December 2023 and a semi-annual cash sweep mechanism capturing cash balances in excess of $25.0 million or time charter equivalent revenue of our Capesize fleet between $18,000 and $21,000, provided that such repayment obligations, together with all other prepayment obligations to Jelco, will not exceed $12 million in any calendar year. These arrangements will provide for the swift reduction of the Jelco debt to the extent the free cash flows of the Company permit.
Moreover, Seanergy and Jelco have agreed to the settlement of all accrued and unpaid interest through December 31, 2020 and other fees payable to Jelco in an aggregate amount of approximately $5.6 million, through a private placement of units consisting of one common share (or one pre-funded warrant in lieu of one common share) and one warrant to purchase one common share for a fixed price of $0.70. The issuance of these common shares and warrants closed on January 8, 2021. Each unit was issued at a price of $0.70, in line with the pricing of the Company’s public offering that closed in August 2020 and represents a 39% premium compared to the closing price of the Company’s shares on the date of signing of the agreement. The terms of the warrants and pre-funded warrants are substantially the same as those of the Class E warrants and pre-funded warrants issued in the Company’s public offering in August 2020. The Company has also granted an option to Jelco to convert up to $3.0 million of principal indebtedness under one of the Jelco Loans at the same terms and pricing. Seanergy has also agreed to amend the conversion price of the Jelco Notes to $1.20 per share, which represents an approximately 139 % premium compared to the closing price of the Company’s shares on the date of signing of the agreement. As part of the transaction, Jelco waived any and all past breaches or events of default under the Jelco Loans and Jelco Notes.
The acquisition of shares by Jelco is subject to a standstill undertaking and 9.99% beneficial ownership blockers, precluding the acquisition of the Company’s shares, including through the exercise of warrants or the conversion of the Jelco Notes to the extent that it would result in Jelco or its affiliates beneficially owning, including control over the voting or disposition of, more than 9.99% of the outstanding common shares of the Company after giving effect to the acquisition. The Company has granted customary registration rights with respect to all shares issued or issuable to Jelco as a result of this transaction, including the shares underlying the Jelco Notes, and has undertaken to file a registration statement covering the resale of these shares.
Seanergy Maritime Holdings Corp. Expects Strong Dry Bulk Market Rebound in Post-COVID Era
Seanergy Maritime Holdings Corp. announced yesterday its financial results for the third quarter and nine months ended September 30, 2020.
For the quarter ended September 30, 2020, the Company generated net revenues after voyage expenses of $15.8 million, compared to $15.9 million in the corresponding quarter of 2019. This compares favorably with the 29% decrease in the average Capesize spot earning s in the third quarter of 2020 versus the same quarter of 2019. Accordingly, the average Time Charter Equivalent (“TCE”)1 earned by the fleet during the third quarter of 2020 was $16,219 per vessel per day, a decrease of 19% from $20,143 in the third quarter of 2019. Seanergy recorded net income of $3.6 million in the third quarter, compared to net income of $0.7 million in the same quarter of 2019. Basic net income per share for the third quarter of 2020 was $0.08. During the quarter, the Company recognized a $5.2 million gain from the refinancing of a loan facility at a discount through a new loan facility provided by a third-party lender.
For the nine-month period ended September 30, 2020 net revenues after voyage expenses amounted to $28.1 million, an 8.5% decrease compared to $30.7 million in the same period of 2019. The TCE earned during the first nine months of 2020 was $10,267, representing a 14% decrease from $12,004 in the same period of 2019, on the back of the historically low earnings environment of the first half of 2020.
Cash and cash-equivalents, including restricted cash, as of September 30, 2020 stood at $33.8 million, increased from $14.6 million as of December 31, 2019. Shareholders’ equity at the end of the third quarter of 2020 was $86.5 million compared to $29.9 million at the end of 2019. Third party vessel-secured debt was $160.1 million at the end of the third quarter of 2020 as compared to $183.1 million as of December 31, 2019.
Stamatis Tsantanis, the Company’s Chairman and Chief Executive Officer, stated:
“We are very pleased to see the third quarter of 2020 turning profitable for Seanergy following one of the worst six-month periods in recent history of our market. The Capesize daily rates improved significantly compared to the historically low first half of the year and that was reflected in the operating performance of our fleet. Our TCE for the third quarter was $16,219, improved by 132% from $6,985 in the first six months of 2020. The main factors behind the recent rate improvement were the increased demand for iron ore in China and the continued recovery in Brazilian exports. Our commercial performance in the fourth quarter tracks the BCI index which has averaged at approximately $20,500 quarter-to-date.
Despite the global short-term uncertainties, we expect this positive trend to continue in the long run, given the increasing demand of commodities combined with the lowest Capesize newbuilding orderbook of the last 15 years. Seanergy is the only pure-play Capesize company publicly listed in the US and is well-positioned to capitalize on positive market fundamentals. Our balanced commercial approach between index-linked time-charters and spot market exposure and our improved balance sheet offer a strong competitive advantage.
The COVID-19 global pandemic has affected the shipping industry and the seafarers onboard our vessels as port restrictions imposed globally have posed challenges on the timing and efficacy of crew changes. Through our meticulous planning we have been able to source solutions for our crew members despite the global travel restrictions. Our focus continues to be to safeguard the well-being of our onshore employees and crew members, avoid disruptions in the day-to-day vessel operations and service our clients efficiently.
In light of volatile market conditions, we took actions during the first nine months of 2020 to preserve our liquidity and strengthen our balance sheet. As a result of these actions, vessel-secured debt has seen an impressive reduction of $23 million since the end of 2019, while our trade credit position has improved by approximately $11.2 million in the same period. Further to the normal amortization of our senior facilities which was met in full, the reduction in our third-party debt was supported by the refinancing of two vessels at a discount, which resulted in a $5.2 million gain. We remain in discussions with our lenders regarding our loan facilities expiring in 2020, and have received positive feedback from our senior lenders to date, as described further in this release.
Furthermore, within the third quarter of 2020, we have taken delivery of our eleventh Capesize vessel, a 2005 built Japanese unit, which we agreed to acquire in the second quarter of the year at what we believe to be a historical low price. Despite the challenges faced globally in shipping, the delivery was concluded successfully during a rising market.
Concluding, despite the challenging operating environment imposed by the evolving pandemic, we have managed to strongly position Seanergy in a prominent position for what we believe will be a strong market rebound in the post COVID-19 era. Our strategic targets of sustainable growth and capital structure improvement, as means to achieve improved returns for our shareholders, continue to be in the foreground of all our initiatives.”
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Seanergy Maritime Holdings Corp. Announces Open-Market Stock Purchase Plan by the CEO and Additional Shareholder Updates
Seanergy Maritime Holdings Corp. announced that its Chairman and Chief Executive Officer, Mr. Stamatis Tsantanis, intends to purchase an aggregate of up to 500,000 common shares of the Company in the open market. In addition, for at least the next 12 months, Mr. Tsantanis does not intend to sell any newly acquired shares of the Company or any of the shares he currently holds, which were acquired in previous years.
Stamatis Tsantanis, Seanergy’s Chairman & Chief Executive Officer, stated: “My intention to purchase Seanergy’s shares reflects my strong confidence in the Company and its fundamentals. Notwithstanding the challenging environment of the first half of 2020, as discussed in our recent announcements, we have achieved notable transactions associated with fleet expansion and debt reduction. Further developments regarding ongoing discussions with certain of our creditors are expected to be announced soon. Seanergy is well positioned to navigate in an improved market environment.”
In addition, it is the Company’s intention not to initiate any public equity offerings until March 2021, nor to implement any reverse stock splits prior to that date. Lastly, regarding the Class E warrants that were issued pursuant to the Company’s $25.0 Million underwritten public offering that closed on August 20, 2020, the Company’s Board of Directors does not intend to exercise its option, pursuant to the terms of the warrants, to adjust the original exercise price of $0.70 per share downwards. Notwithstanding the Company’s current intentions, the Board of Directors will continue to evaluate all available strategic alternatives, which may include stock issuances to the Company’s creditors as a means of addressing maturing debt instruments, based on market conditions and other factors which may arise in the future.
Seanergy Maritime Holdings Corp. is the only pure-play Capesize ship-owner publicly listed in the US. Seanergy provides marine dry bulk transportation services through a fleet of 11 Capesize vessels with an average age of about 11.5 years and aggregate cargo carrying capacity of approximately 1,926,117 dwt. The Company is incorporated in the Marshall Islands and has executive offices in Athens, Greece. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP”, its Class A warrants under “SHIPW” and its Class B warrants under “SHIPZ”.
Seanergy Maritime Holdings Corp. Announces Successful Closing of Refinancing Resulting in a Gain of $5.6 Million
Seanergy Maritime Holdings Corp. announced today the successful closing of the previously announced refinancing of a credit facility secured by two of its Capesize vessels, M/V Geniuship and M/V Gloriuship (the “Previous Facility”), with a new credit facility secured by the same vessels (the “New Facility”).
The outstanding balance of the Previous Facility was $29.1 million, was retired for an amount of $23.5 million following a reduction accepted by the previous lender. The settlement resulted into a material $5.6 million gain and equity accretion for the Company that will be recorded in its financial results for the third quarter and nine months ending September 30, 2020. The settlement amount was funded by a combination of proceeds from the New Facility and cash on hand.
The New Facility has an initial balance of $22.5 million, a five-year term and reduced quarterly repayments that will positively impact the break-even rates of the underlying vessels, as well as less restrictive financial covenants and value maintenance provisions enhancing the Company’s financial flexibility. This refinancing and the settlement achieved with the outgoing lender will result in a $6.6 million aggregate reduction in the Company’s debt.
Seanergy is in advanced discussions with other lenders of the Company with maturities falling due in 2020 with the objective of extending the maturities and improving the financing terms of these facilities.
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:
“We are pleased to announce another important achievement for Seanergy. The closing of this refinancing has resulted in a $6.6 million debt reduction and a $5.6 million equity accretion, both of material significance for our Company.
As mentioned in our recent earnings release, the first half of 2020 was one of the most challenging periods in the history of drybulk shipping. Capesize daily spot rates averaged approximately $7,000 through Q1 and Q2, which is a fraction of the normalized mid-cycle rates of approximately $25,000.
During this period, we acted to further strengthen our balance sheet by raising equity from our shareholders to reduce our debt levels and capitalize on market opportunities. The recent acquisition of the M/V Goodship was agreed at a historically low value. In addition, the refinancing of the credit facility announced today will result in a $6.6 million debt reduction on our balance sheet.
We are also in advanced discussions with the remaining lenders of the Company with maturities falling due in 2020 to extend the maturities and improve the financing terms of these facilities. We expect to announce the positive outcome of these discussions soon.
In the second half of 2020, the Capesize market has improved significantly and the average daily spot rates are at approximately $26,000. Seanergy will continue to pursue opportunities that will serve our strategic targets and further delever the Company during what we expect to be a much stronger market environment.”